There is pending legislation in Michigan (House Bill 5503 and Senate Bill 1035) that seeks to amend existing regulations to allow more than 10 percent of an electric utility’s retail sales to be provided by alternative suppliers. The proposed amendment is well-intended, but it is simply bad for Michigan’s citizens and businesses.

Advance planning by utilities and consistent regulatory policies are fundamental to securing a future that provides affordable electricity. Large financial commitments are required to modernize and expand today’s electrical power system to meet future needs. If we set forth policies that create uncertainty, there will not be a clear model for utilities to recover costs and utilities will find it difficult to make large capital investments, especially in generation.

It is difficult to understand how electrical customers will save money if local utilities are required to provide additional standby generation or buy power on the spot market to serve load if the alternative supplier is no longer able to provide power. It is also unlikely that the alternative supplier will be required to comply with the same regulations that are imposed on the hometown utility.

A key question to ask is, “Who is responsible for providing an adequate supply of electrical power to our homes and businesses?” Traditionally, the hometown utility was charged with making sure its customers had an adequate supply of affordable electric power. Should we now change that dynamic, undermine our hometown utilities and charge a nameless, faceless entity with that responsibility? I hope not!